As I wrote in the last perspectives, when a female executive is fired for no „reason” and her lawyer has done the right job for the remuneration of the board of directors, her dismissal will trigger the payment of a certain amount to her to amortize her transition to employment. When a board decides that it must terminate a CEO`s employment relationship, the terms of the employment contract determine whether the association must pay severance pay. Carefully crafted definitions of „causes” are essential. In the United States, executive agreements are concluded exclusively by the President of the United States. They are one of three mechanisms through which the United States make binding international commitments. Some authors consider executive agreements to be treaties under international law, as they bind both the United States and another sovereign state. However, under U.S. constitutional law, executive agreements are not considered treaties within the meaning of the contractual clause of the U.S. Constitution, which requires the Council and the approval of two-thirds of the Senate to be considered a treaty. However, the existence of one or more „good reasons” in a manager`s employment contract can make the difference between positive results and terribly negative results if one of the „good reasons” were indeed to emerge. Ask our customers. Although it is obviously impossible to guard against all risks, pay close attention to the following provisions when designing employment contracts for the board of directors.
In this way, the company will be better prepared to defend itself in case of need in future disputes. Carefully crafted termination clauses in executive employment contracts can avoid such outcomes. These provisions should provide direction to the executive on the expectations of the association and emphasize both clarity and the maintenance of the association`s reputation and long-term health. The U.S. Constitution does not explicitly give a president the power to enter into executive agreements. However, it may be authorized to do so by Congress or it may do so on the basis of the power to manage foreign relations granted to it. Despite the question of the constitutionality of executive agreements, the Supreme Court ruled in 1937 that they have the same force as treaties. As executive agreements are concluded on the authority of the President-in-Office, they do not necessarily bind his successors. Grasp the valuable notion of „good reason”: the idea that there may be one or more specified reasons – all carefully defined in the manager`s employment contract – that allow the manager to leave on his own while recovering his severance pay. To use the example above, a period of 90 days, perhaps even 60 days from the notification that the CEO must move to Ohio, should be enough to decide whether she remains in NYC (after exercising her right to leave for „reason”) or maintain her position and travel to Akron.
The employer is right to know that if he moves with the company, two years later, he will not be able to change his mind and claim „Good Reason” as the reason to move to Manhattan. So pay attention to the date of the corresponding employment contract for executives. None of these provisions would allow the employer to terminate the manager for a significant reason for negligence, or even ruthlessness, in the performance of his duties.. . . .